Welcome!

News Feed Item

Northern Frontier Corp. Announces its Fourth Quarter and Fiscal 2013 Financial Results, its 2014 Capital Expenditure Budget and Declares its First Dividend

CALGARY, March 20, 2014 /CNW/ - Northern Frontier Corp. (TSX-V: FFF) (the "Corporation" or "Northern Frontier") is pleased to announce its fourth quarter and fiscal 2013 financial results, its 2014 capital expenditure budget and declaration of its first dividend.

Selected Financial Highlights

       
(in 000's CAD, except as noted) 3 months ended
Dec 31, 2013
13 months ended
Dec 31, 2013
12 months ended
Dec 31, 2013 (1)
      (pro forma)
Revenue $   14,522 $  15,017 $  67,167
Gross Profit 2,955 3,077 17,570
   as a % of revenue 20.3% 20.5% 26.2%
EBITDA (2) 2,093 1,867 14,753 
   per share 
   as a % of revenue
$       0.26
14.4%
$      0.71
12.4%
$      1.32
22.0%
Net loss and comprehensive loss (409) (1,967) $    1,732
Earnings (loss) per share - basic and diluted $    (0.05) $   (0.74) $      0.16
Funded debt (3) 32,723 32,723  
Weighted average common shares outstanding (4) 8,126,304 2,643,524 11,160,609
Common shares outstanding (4) 11,160,609 11,160,609 11,160,609
Common share purchase warrants outstanding 5,115,639 5,115,639  

(1)      These amounts represent management's pro forma estimate of Northern Frontier's financial results if it had completed its business combination on January 1, 2013 rather than the actual date of September 27, 2013.
(2)      EBITDA (earnings before qualifying transaction costs, finance costs, taxes, depreciation and amortization, gain/loss on disposal of property and equipment and share-based compensation) is not a recognized measure under IFRS (defined herein). Refer to "Non-GAAP Measures".
(3)      Funded debt (loans and borrowings before unamortized debt issue costs and obligations under finance lease less cash and cash equivalents) is not a recognized measure under IFRS (defined herein). Refer to "Non-GAAP Measures".  
(4)      Amounts have been adjusted for the effect of the 1 for 15 common share consolidation completed on February 15, 2013.

Overview

Northern Frontier completed its first business acquisition in September 2013, by purchasing a civil and logistics services provider located within the steam assisted gravity drainage ("SAGD") Oilsands market of northeastern Alberta for $54.3 million. Central to our strategy is to build on a company with a solid foundation, through providing an expanding array of industrial services to the long-term asset base being developed in the resource sectors of western Canada. This acquisition has provided that platform, with a substantial asset base, solid customer relationships and a physical location proximate to substantial future growth opportunities within the SAGD market.

The company also completed two equity raises for combined net proceeds of $28.6 million to support growth through strengthening its balance sheet and deploying capital in anticipation of 2014 demands. As part of the second capital raise, the board of directors implemented a dividend policy to support a long-term cost of capital that will accelerate future acquisitions and growth of the business.

The fourth quarter of 2013 (post-platform acquisition) was focused on implementing financial systems and capital structure that would facilitate the transition of the business from a privately-held organization to one that will meet the expectations of the public markets.

Northern Frontier exited fiscal 2013 with a pro forma EBITDA of $14.8 million. The stand-alone trailing twelve month EBITDA of our platform acquisition was $16.6 million, exceeding initial expectations when we agreed to acquire the business. Overall, Northern Frontier's fiscal 2013 performance and post-platform acquisition financial results (effectively the fourth quarter of 2013) were relatively consistent with expectations. Financial results in the fourth quarter of 2013 were impacted by wet weather in early October, a deferral of a couple of client projects and an extended holiday break at the end of the quarter. This resulted in an increase in labor costs as a percentage of revenue and a decline in camp utilization. Overall, management is satisfied with the earnings capacity it acquired through the platform acquisition and expects to increase the earnings capacity of the business through fiscal 2014.

Outlook

Management expects the first half of fiscal 2014 to have moderate activity levels compared to fiscal 2013. Demand for services is currently expected to accelerate in the second half of fiscal 2014, driven by new construction and successful production results from existing facilities within the SAGD market that the Corporation participates in. Northern Frontier also expects to see growth from its capital expenditures made in the fourth quarter of 2013, including an expansion to its camp bed capacity driven by expected employee growth and equipment fleet. In addition, the Corporation expects deployment of capital into its logistics strategy in early 2014 to start contributing to earnings growth in the second half of fiscal 2014.

2014 Capital Expenditure Budget

For fiscal 2014, the Corporation's net capital expenditure program is $14.3 million, allocated as follows:

         
(in 000's CAD)   Growth Sustaining Total
         
Automotive   $           - $      355 $      355
Construction and excavating   5,375 3,020 8,395
Logistics   6,480 - 6,480
    11,855 3,375 15,230
         
Estimated proceeds on disposal of equipment     (950) (950)
         
Capital additions, net   $  11,855 $   2,425 $  14,280

Dividend Declared

Northern Frontier has declared its first quarterly dividend of $0.065 per common share, payable on April 15, 2014 to holders of record on April 3, 2014 (ex-dividend April 1, 2014). This represents an annual yield of 7.1% based on the March 20, 2014 closing price of $3.65 per common share.

Additional Information

Northern Frontier's audited consolidated financial statements for the 13 months ended December 31, 2013 and 12 months ended November 30, 2012 and fiscal 2013 management discussion and analysis ("MD&A") have been filed with the Canadian securities regulatory authorities and may be accessed under the Corporation's profile on SEDAR at www.sedar.com.

Conference call

Management of Northern Frontier will hold a conference call on Friday, March 21, 2014, at 9:30 a.m. Calgary / 11:30 a.m. Toronto time.  The call will feature remarks by Chris Yellowega, President and CEO and Monty Balderston, Executive Vice President and CFO regarding the financial results.

Conference dial-in instructions are as follows:

Toronto: 416-764-8682
North America: 888-390-0549
Conference ID: 95520669

A replay of the call will be available 24 hours after the event until 11:59 p.m. EST on March 28, 2014. To access the archived conference call, please dial 1-888-390-0541 and enter passcode 520669.

About Northern Frontier Corp.

Northern Frontier's strategic objective is to create a large industrial and environmental services business through a buy and build growth strategy. Currently, the Corporation provides civil construction and excavation services to the industrial industry, primarily in the in situ Oilsands region south of Fort McMurray, Alberta.  Through providing these services to large industrial customers in the steam assisted gravity drainage ("SAGD") region of northeastern Alberta, the Corporation focuses on the ongoing demand for services to support operating facilities, sustaining capital expenditures to maintain production levels of those facilities and the development of new production capacity.

The Corporation's common shares and common share purchase warrants are listed on the TSX Venture Exchange under the trading symbol "FFF" and "FFF.WT", respectively.

Reader Advisory

Forward-Looking Statements

This news release contains forward-looking information and forward-looking statements based on certain expectations, projections and assumptions. Certain information in this news release contains forward-looking statements including management's assessment of Northern Frontier's future operations, business prospects and opportunities, management's future expectations regarding the financial performance of the Corporation, forecasted 2014 capital expenditures of the Corporation and expected payment of dividends declared. With respect to the forward-looking statements contained in this news release, Northern Frontier has made assumptions, regarding among other things: that Northern Frontier will continue to conduct its operations in a manner consistent with past operations. Although Northern Frontier believes that the expectations reflected in the forward-looking statements contained in this news release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations or assumptions will prove to be correct. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Northern Frontier's control including, without limitation, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of exchange rates, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility and timely and cost effective access to sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the forgoing list of factors is not exhaustive. Additional information on these and other factors that could affect Northern Frontier's operations and financial results are included in Northern Frontier's MD&A and other reports on file with Canadian securities regulatory authorities and may be accessed under the Corporation's profile on SEDAR at www.sedar.com. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Northern Frontier does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

This information is subject to a number of risks and uncertainties, many of which are beyond the Corporation's control. Users of this information are cautioned that actual results may differ materially. For additional information refer to the "Advisory Regarding Forward-Looking Statements" section of the Corporation's MD&A.

Non-GAAP Measures

Selected financial information for the three and 13 month periods ended December 31, 2013 is set out above and includes the following measures that are not recognized under International Financial Reporting Standards ("IFRS") and are non-generally accepted accounting principles ("non-GAAP") measures: EBITDA and Funded Debt. This information should be read in conjunction with the consolidated financial statements for the three and 13 month periods ended December 31, 2013 and the Corporation's MD&A available under the Corporation's profile on SEDAR at www.sedar.com. Further information regarding these non-GAAP measures is contained in the Corporation's MD&A.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

SOURCE Northern Frontier Corp.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
With over 720 million Internet users and 40–50% CAGR, the Chinese Cloud Computing market has been booming. When talking about cloud computing, what are the Chinese users of cloud thinking about? What is the most powerful force that can push them to make the buying decision? How to tap into them? In his session at 18th Cloud Expo, Yu Hao, CEO and co-founder of SpeedyCloud, answered these questions and discussed the results of SpeedyCloud’s survey.